I didnt read all of the posts, maybe it was already mentioned...
Have you ever used google Docs? It sounds like a magic app, but i dont really know anyone using it. Heard of Amazon S3? Cheap online storage. This is cloud computing. Mix this with web 2.0
I'm certain "cloud computing" is Google's direction. everything on the web, just like the old days where your computer (any computer) is your dumb terminal, and the "cloud" (i.e. the internet) is your server.
used to be an AS400 in your building and green screens all around the office, well this is the next generation of server/client.
It will be Google OS, running Google Chrome, running Google Docs, Google Mail, Google Calendar, Google Maps, Google Earth and every other Google App there is.
add what they are calling "Web 2.0" and everything is cross-reference, linked and directly accessible. Add the fact fact that google records your search history unless you opt-out.
Double edged sword -- a dream to a end-user; a dream to a hacker (or the gov't).